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Amazon attacks Coalition's plan to impose GST on all online purchases

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Mike Estes
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The internet giant Amazon has attacked the Turnbull government’s plan to impose the GST on all online purchases, saying it is so poorly designed it will create an “inherent disincentive” to comply.

It has questioned how the government came up with its proposed GST collection model, saying a previous government taskforce recommended a superior model in 2011.

The Senate standing committee on economics will hold a public hearing on the bill on Friday.

At the moment, imports of goods worth less than $1,000 are GST-free – including clothing, books, electronic devices and sports equipment.

The government wants to abolish the concession to “level the playing field” for bricks-and-mortar stores, after years of lobbying from retailers such as Gerry Harvey.

But it wants online giants such as Amazon and eBay to collect GST for the commonwealth using a so-called “vendor model”.

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Mike Estes
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